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HB 7407

AN ACT RELATING TO HEALTH AND SAFETY -- THE HOSPITAL CONVERSIONS ACT

2026 Regular Session Introduced by Jackie Baginski and 9 co-sponsors

The bill allows expedited, concurrent AG and DOH review of hospital conversions in court-supervised insolvency, with detailed disclosures and a 1-year sunset.

06/18/2026 Signed by Governor
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WeVote Research Nonpartisan
Bill Summary · HB 7407

Purpose and intent

  • HB 7407 proposes to amend Rhode Island’s Hospital Conversions Act to allow a streamlined, expedited review process for hospital conversions involving a court-supervised insolvency proceeding.
  • Specifically, it authorizes the Attorney General (AG) and the Department of Health (DOH) to permit an initial application to be filed under expedited review provisions for such hospitals, subject to meeting certain conditions.
  • The act is temporary in nature, with a sunset provision: the expedited-process authorization sunsets one year after the act’s effective date, but any applications filed before sunset continue through the process.

Key provisions and changes

  • Expanded eligibility for expedited review
    • The act adds an option to file an initial application under the expedited review provisions (24-17.14-12.1) when a hospital is subject to court-supervised insolvency (bankruptcy, receivership, special master).
  • Concurrent approval timeline
    • The expedited path requires that both the AG and DOH review run concurrently, and neither department may delay the other’s review.
  • Public filing requirements
    • An initial application must include detailed information about the transacting parties and the proposed new hospital, including governance, finances, operations, real estate, and community impact, among many other categories (the statute lists an extensive, itemized set of 46+ categories detailing documents, financials, projections, and due diligence).
  • Confidentiality safeguard
    • Reports of due diligence performed by transacting parties are to be kept confidential and not released to the public, regardless of other provisions, with the AG and DOH holding them confidential.
  • Public access and filing logistics
    • Two copies of the initial application must be sent to both DOH and AG (via certified mail or electronically if accepted by the agencies). Except for confidential information, the application is a public record.
  • Insolvency-specific procedures
    • If a hospital is in court-supervised insolvency at the time of filing, both departments may allow the accelerated filing using the expedited provisions, with public comment opportunities and determinations due within specified timelines (90 days from acceptance; subject to the sunset rule).
  • Sunset and scope
    • The expedited procedures sunset one year after becoming law, with the note that they do not hinder reviews already filed before sunset.

Who and what would be affected

  • Hospitals undergoing conversion where the acquiror or acquiree is a for-profit or not-for-profit corporation.
  • Hospitals currently in or facing court-supervised insolvency, which would potentially access the expedited review pathway.
  • State agencies (Attorney General and Department of Health) and the public, which would participate in concurrent reviews and public comment (where applicable), with certain confidential elements preserved.

Procedural and timeline aspects

  • Filing process
    • Initial application format: two hard copies (or electronic, if acceptable) to AG and DOH simultaneously.
    • Most information requested is comprehensive, covering governance, finances, patient care metrics, real estate, staff, charitable assets, community impact, and numerous other due diligence documents.
  • Review and decision timelines
    • Expedited path: decisions rendered within 90 days of acceptance, with a public comment opportunity within 20 working days of acceptance.
    • General provision requires concurrent, non-delayed reviews by both departments; specific timelines mirror the expedited approach when applicable.
  • Public records and confidentiality
    • Except for confidential/proprietary items, the application and materials are public records.

Additional notes

  • The bill includes a detailed “EXPLANATION” section describing the intent and sunset provision.
  • It has multiple co-sponsors and was introduced in January 2026, indicating a broad legislative interest in hospital conversion oversight and insolvency contexts.

If you’d like, I can provide a section-by-section risk assessment (e.g., potential privacy concerns, administrative burden on applicants, and anticipated public-interest implications) or compare this proposal to the current Hospital Conversions Act framework.

Compiled from official sources — confirm details with the bill’s official record.

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